PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1494811
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1494811
According to Stratistics MRC, the Global Edge Computing Market is accounted for $21.5 billion in 2024 and is expected to reach $134.0 billion by 2030 growing at a CAGR of 35.6% during the forecast period. Edge computing is practice of processing data closer to its source rather than relying on centralized data centers. This approach aims to minimize latency, enhance efficiency, and improve scalability in data processing and analysis. By placing computing resources closer to where data is generated, typically at or near the "edge" of the network, edge computing reduces the need to transmit data over long distances to centralized servers, thereby reducing network congestion and improving response times. Edge computing is particularly beneficial for applications that require real-time data processing, such as Internet of Things (IoT) devices, autonomous vehicles, and industrial automation.
According to industry experts, 75% of data will be created outside central data centers by 2025. Emerging technologies, such as Industry 4.0, artificial intelligence, and IoT, are likely to boost the global market during the forecast period.
Growing internet-connected devices
As more devices generate vast amounts of data at the network's periphery, the demand for localized processing and real-time analytics escalates. Edge computing addresses the challenges posed by this influx by offering low-latency data processing, reducing network congestion, and ensuring faster response times. Moreover, it enables efficient management of distributed systems, enhancing scalability and reliability. Consequently, the expanding ecosystem of internet-connected devices fuels the adoption of edge computing solutions across industries, driving market expansion and innovation in edge infrastructure, software, and services.
High initial investment
Businesses, especially small and medium-sized enterprises (SMEs), the upfront costs of hardware, software, and infrastructure can be prohibitive. Additionally, the need for specialized skills and expertise further adds to the financial burden. This barrier to entry restricts adoption rates and limits market expansion, particularly for organizations with limited resources. Furthermore, the perceived risk associated with such substantial investments may deter potential buyers from exploring edge computing solutions, hindering the realization of its full potential benefits across industries.
Improved bandwidth efficiency
Improved bandwidth efficiency has a profound impact on the edge computing market by enabling enhanced data transmission and processing capabilities. With more efficient utilization of available bandwidth, edge computing solutions can seamlessly handle larger volumes of data while reducing latency and congestion. This optimization allows for faster and more reliable communication between devices and centralized systems, facilitating real-time analytics and decision-making. Moreover, the reduced strain on network resources leads to cost savings for businesses and improves overall system performance.
Complexity of management
As organizations deploy edge nodes across distributed networks, managing and coordinating these decentralized resources becomes increasingly intricate. The diverse hardware and software configurations, coupled with varying network environments, amplify the complexity of monitoring, troubleshooting, and ensuring security across the edge infrastructure. This complexity requires specialized skills and resources, which may be scarce or costly for some businesses hindering market expansion.
Covid-19 Impact
The COVID-19 outbreak has affected the market growth as well, with edge hardware devices experiencing a decline in production. As trade restrictions were enforced during the early stage of the pandemic, the production of edge chip sets, servers, and other devices was put on hold, affecting the progress of the global market. However, with the rapid adoption of advanced technologies and digitalization, businesses have developed innovative uses of edge devices. Also, with the rising introduction of IoT medical applications, edge computing proved to be a life-saving technology for the healthcare industry during the COVID-19 outbreak.
The hardware segment is expected to be the largest during the forecast period
The hardware is expected to be the largest during the forecast period because the demand for hardware is gaining steam in the managed services industry and is predicted to account for the most significant market share over the forecast timeline. As the number of IoT and IIoT devices grows quickly, the volume of data created by these devices is also increasing. Therefore, to deal with the volume of data created, enterprises are adopting edge computing gear to lessen the load on the cloud and data centers. Thus, the demand for secure and efficient data processing at the edge of the network is likely to boost the growth of the hardware segment during the forecast period.
The energy & utilities segment is expected to have the highest CAGR during the forecast period
The energy & utilities segment is expected to have the highest CAGR during the forecast period as smart grids, which depend on device edge infrastructure, are likely to contribute to revenue growth in the energy and utility segment. Environmental sustainability initiatives are fueling efforts to improve electrical utility service efficiencies worldwide, including the development of alternative renewable power sources like solar and wind. Smart grids are being installed worldwide to enable capabilities and enhance operational efficiencies, including real-time consumption control, incorporation with smart appliances, and microgrids to support generation from dispersed renewable sources.
North America is projected to hold the largest market share during the forecast period due to the convergence of IIoT with edge computing is forming favorable conditions for manufacturers in the U.S. to move toward connected factories. Several startups have also evolved to deliver platforms for developing edge-enabled solutions that are anticipated to boost the regional market's growth. For instance, Telus Communications and MobiledgeX, Inc. collaborated to build the MobiledgeX Early Access Programme. The program has allowed developers to build, test, and analyze the efficacy of edge-enabled applications in a low-latency environment accelerate the growth of edge computing technology in the country over the coming years.
Asia Pacific is projected to hold the highest CAGR over the forecast period owing to western companies such as Meta, Apple, Netflix, and Google have shaped the global digital economy by establishing standards for using personal data to target ads. Chinese companies such as Alibaba, Baidu, Huawei, and ZTE are shaping the future direction of edge computing-backed surveillance technology. Such initiatives in China cater to the demand; thus, the country has the highest share in the region. For instance, in March 2022, Tata Consultancy Services announced the launch of an enterprise 5G edge solution suite with Microsoft Azure Private Mobile Edge Computing (Private MEC). Such developments are poised to grow the demand for edge computing in the Asia Pacific region over the forecast period.
Key players in the market
Some of the key players in Edge Computing market include ABB, Amazon Web Services (AWS), Inc., Aricent, Inc, Atos, Capgemini Engineering, Cisco Systems, Inc., Dell Technologies Inc., EdgeIQ, General Electric Company, Google LLC, Hewlett Packard Enterprise Development, Honeywell International Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Juniper Networks Inc., Microsoft Corporation, Rockwell Automation, Inc, SAP SE and Siemens AG
In May 2024, ABB expands electrification portfolio with acquisition of Siemens' Wiring Accessories business in China. The acquisition will broaden ABB's market reach and complement its regional customer offering within smart buildings.
In May 2024, ABB and Niedax Group to create joint venture to meet growing demand for cable tray systems in North America. The collaboration will integrate the North American cable tray businesses of ABB's Installation Products Division and Niedax Group into a new joint venture.
In May 2024, Lenovo and Cisco Announce Strategic Partnership to Simplify Path to AI Innovation. The two companies agree to design, engineer and deliver deeply integrated solutions that advance generative AI capabilities and digital workplace solutions to boost enterprise productivity
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.